In the series of interviews, Ruslan Slobodian, Commissioner of Ukraine’s National Energy and Utilities Regulatory Commission (NEURC) talks about the role of AI in the energy sector, smart meters, cyber attacs and more. Amid rising energy demands and a global shift toward renewables, AI-powered smart meters are improving energy efficiency, enhancing grid management, and setting the course for the future of energy systems. Ruslan shares insights into how these advancements are influencing Ukraine’s energy landscape, particularly during the country’s ongoing challenges.

Before we dive into how AI is transforming smart meters, could you share a bit about where things currently stand in Ukraine? How widespread is the use of smart meters, and what progress is being made in integrating AI into this technology?

Currently, smart meters account for less than 10% of all electricity meters in Ukraine, and the majority of these are outdated systems that only allow for remote reading of electricity consumption data once a day - or, in most cases, just once a month. AI is not yet used in smart metering systems in Ukraine. In general, Ukraine has its own production of smart meters, which have quite good functionality but does not have modern software that could fully activate this functionality. Smart metering is the basic link of smart grids that should supply large amounts of data (Big Data) for further processing, and smart metering systems in Ukraine are not yet able to cope with this function. Currently, they are used only for billing.

What are the prospects for renewable energy development in Ukraine and how do AI-enabled smart meters facilitate the integration of Renewable Energy Sources (RES) into the grid?

Ukraine holds immense potential for renewable energy growth. However, the ongoing war has significantly challenged the energy sector, underlining the need to decentralize energy production and enhance the resilience of local energy systems.

The Decree of the Cabinet of Ministers of Ukraine No. 713-r (July 18, 2024) establishes the "Strategy for the Development of Distributed Generation until 2035", prioritizing the deployment of small-scale renewable energy facilities, energy storage systems, and smart grids. The Strategy aims to install an additional 4 GW of renewable energy capacity by 2026 to enhance energy independence and sustainability.

A crucial element in integrating renewables and ensuring the success of microgrids is the deployment of smart meters. Proper integration of renewable energy sources simply isn’t feasible without them. This is especially important for microgrids, which rely on precise balancing of renewable generation, storage, and local demand to maintain stability. For Ukraine, investing in smart metering is essential to fully harness renewable energy potential and build resilient energy systems that can support communities in these challenging times.

Managing such networks requires the use of a large amount of data and real-time control. Software for automating power grid management already exists, but it is evolving towards the use of AI, as meaningful power grid management is required in the face of rapidly increasing data and control parameters.

What are the biggest challenges in implementing AI in smart meters on a large scale?

The implementation of smart metering is generally expensive, and this remains the biggest obstacle to widespread adoption. Currently, only a few countries are nearing full implementation of smart metering, and even those have yet to apply AI on a large scale. Most countries are not expected to complete smart metering rollouts until at least 2030. In Ukraine, the goal is to complete the deployment by 2035, as outlined in the Smart Grid Implementation Concept approved by the Cabinet of Ministers of Ukraine (No. 908-p, October 14, 2022). However, the war poses a significant challenge that could delay these plans.

On a global scale, the main challenge with AI implementation is the increasing transfer of data processing and network management - beyond just electrical systems - into AI’s hands. AI is not just another piece of software; it has the potential to make autonomous decisions. Sooner rather than later, AI may surpass human decision-making capabilities and evolve into a relatively "independent" entity. How AI will manage the power and responsibility we entrust to it remains uncertain.

As we consider the benefits of AI in optimizing the energy grid, it's also important to address the accompanying risks. What are the potential security and privacy concerns associated with the use of AI in smart meters?

Increasing automation raises risks associated with potential third-party interference with automated systems. Therefore, the implementation of automated systems, including smart metering systems, should be carried out simultaneously with the implementation of cybersecurity measures. Large amounts of data, as well as the increasing number of devices, endpoints, and access points, present significant concerns, as they create more opportunities for potential breaches.

Ukraine has been under constant cyberattacks since 2014. With the outbreak of full-scale war in 2022, the number of these cyberattacks has increased significantly, with the energy sector being one of the primary targets. If cybercriminals gain control over automated systems at energy facilities, the consequences could be catastrophic.

While Ukraine already has considerable experience in countering cyber-attacks, continuous improvement of cyber defense systems is essential, as cybercriminals constantly enhance their methods of attack.

How can AI be used to enhance the security of the data collected by smart meters?

AI can enhance the cybersecurity of smart metering systems by strengthening data encryption and improving security algorithms, as cybercriminals increasingly adopt AI for their attacks, cybersecurity will need constant innovation and adaptation. Cyber defense is a continuous process, and AI will play an important role in staying ahead of evolving threats.

How do you envision the role of AI in smart grids evolving over the next decade?

In the modern world, 10 years is a very long period. If we recall what technology was like (in general) 10, 20, 30 years ago, we will note that a lot has changed in that time. Therefore, making predictions for 10 years is not an easy task.

It is quite likely that in 10 years, smart grids will emerge in the deepest sense of the word - not just as automated networks, but as systems capable of making autonomous decisions. However, integration across high voltage (HV), medium voltage (MV), and low voltage (LV) networks remains a crucial challenge. This integration poses not only technical issues but also organizational ones, as coordination across these levels becomes essential for a truly intelligent grid.

Furthermore, the physical capabilities of the current grid infrastructure are not yet sufficient to fully support AI-driven recommendations. While AI can generate advanced insights and propose optimal actions, adapting the physical grid to handle these demands will require considerable time and investment. Preparing the physical grid to meet the needs of this new AI-enabled world will be a gradual but essential process.

AI will enable dynamic, interactive management across all levels of the grid, from individual sockets and light bulbs to power transmission systems and power plants. This integration will open up new services for electricity consumers and create new markets within the energy sector.

Shifting our focus to specific regional challenges, what role can AI-powered smart meters play in enhancing the resilience of Ukraine's energy infrastructure in the face of ongoing threats?

Given the challenges Ukraine is currently facing, AI-powered smart meters can play a critical role in enhancing the resilience and stability of its energy infrastructure. These systems can enable more efficient management of power grids, particularly through the integration and operation of microgrids. Microgrids are especially challenging to manage due to their ability to operate both as part of the larger grid and independently in island mode -an increasingly vital function for Ukraine given the constant threats to its energy infrastructure.

AI can optimize the balance between local energy generation, storage, and consumption in real-time, ensuring uninterrupted power supply in isolated or damaged areas. This is particularly important for Ukraine, where microgrids can provide energy security to communities, industries, and critical facilities during disruptions caused by attacks on the central grid. By using AI to predict consumption patterns, optimize energy distribution, and manage storage resources like ESS, Ukraine can enhance both the flexibility and the self-sufficiency of its energy networks.

Moreover, AI-powered smart meters can provide faster detection of grid vulnerabilities, enabling quicker responses to threats and minimizing downtime. The technology is still in the early stages of development globally, but for Ukraine, it is becoming crucial in the face of ongoing attacks on energy infrastructure. As AI continues to evolve, its ability to enhance energy management, resilience, and cybersecurity will be instrumental in Ukraine’s recovery and long-term energy independence.